All employees affected by the reduction plans can opt to remain on the Nokia payroll through the end of 2011. The company says it expects cuts to occur in phases until the end of next year, linked to the roll-out of its planned product and services portfolio.

Nokia aims to reduce its Devices and Services operating expenses by 1 billion euros for the full year 2013 in comparison to the full year 2010, as previously announced.

Nokia says it intends to ramp up its capacity for the development of smart phones based on the Windows Phone platform – the deal with Microsoft (NASDAQ:MSFT) was signed last Thursday.

Nokia adds that it plans to “consolidate the company’s research and product development sites so that each site has a clear role and mission." This will result in the contraction or closure of some sites, although the company leaves the door open for expansion of other sites.

Nokia has long been struggling to come up with a solid answer to Apple’s (NASDAQ:AAPL) iPhone and the steamroll that is Android in the global smart phone segment, which is the main reason for its continued decline. Question is if it will ever be able to make a comeback.

“At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions.

However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia.”

Accenture and Nokia have been working together since 1994. In October 2009, Accenture acquired Nokia’s professional services unit that provides engineering and support of the Symbian operating system to mobile device manufacturers and service providers, which then served as a ‘key building block’ in Accenture’s Mobility services portfolio.

Nokia last week reported its earnings for the first quarter of 2011. Profit declined 1.4% year-over-year, and the company offered a bleak outlook for the second quarter of 2011: Nokia said it expects operating margins from its handset business to slip in Q2.